CHURCH & DISTRESSED COMMERCIAL LOANS

CHURCH LOAN PROGRAM

• Loan Amounts: From $1Million to $25 Million.
• Churches of all denominations.
• LTV: Up to 75%
• Fixed Rates: 3 to 5 Years
• Amortization: 20 to 25 Years
• Transaction type: Purchase and Refinance
• Churches must have Audited Financial Statements.
• Rates Starting at 4.25%

 

DISTRESSED LOANS

• This Program is Specially designed for Borrowers who want to take advantage of significant reduction on their payoff , due to previous market conditions
• Tailored for Both , Non Asset Based Loans & Asset Based
• Fast Closings , Generally within 45 Days , from complete package
• Nationwide Lending , Including Puerto Rico & International (Europe & Canada)

• Loan Amount from $ 5 Million & Up
• DSCR of at least 1,25
• Interest Rate From 11% to 20%
• All closing cost , Interest Reserve , Points , Legal are added to the loan. Borrower do not have any out pocket expense.
• Term: usually up to 3 Years
• Prepayment Penalty: 1 Year Lockout Minimum.

INELIGIBLE PROPERTIES Adult entertainment Facilities Raw Land/Lots New Construction Agricultural/ Farm Land

Click for submission form

EZ EQUITY (Small Balance – Stated Income Verified Assets)

 

Loan Amount: From $100K to $700K

—Interest Rate starting at 7.75%

—Loan Term: 25 Year Fixed rate w/ NO BALLOON

—LTV: Up to 70% Max for Multifamily and other property types.

—LTV: Reduced based on the transaction risks and credit scores.

—CLTV: Up to 80%

—Minimum Population Requirement: 3,500 town and 20,000 County

—Minimum Credit Score requirement: 600 (all three scores)

—Purchase, Rate & Term & Cash Out

—Investment property or Owner Occupied

—Prepayment Penalty:

 

5 years declining at 5,4,3,2,1 on Fixed Program

5% Flat for 5 Years on Adjustable Program

Closing Time: 4 Weeks typically, from a complete package.

Seasoning Requirement: 24 Months, if property is owned for less than 24 months, purchase price or appraised value, whichever is the lower will determine the LTV.

Property Type: Apartments (5+units), Mixed-use , Professional Office space, Retail Store – Strip/Free Standing, Small Commercial, Motel/Hotel, Mobile Home Park, Warehouse, Church, Garage/Storage, Auto Repair.

Territory: Nationwide, except for: Alabama, Alaska, Hawaii, Michigan, Nevada, Ohio, West Virginia, Vermont & Los Angeles County, CA.

Credit Quality: Usually, mortgage should be current, and been rated for 24 months. Typically Mortgage rating must not have more than 1 X (30) days delinquency in the past 12 months. HOWEVER, will also consider 3 X (30) days and 1 X (60) days delinquencies in the last 12 months period

Bankruptcies: Generally not allowed in the prior 2yrs.

Charge Offs/Collections: Are not allowed in the prior 12 months period. Exceptions may be granted with a higher rate.

BRIDGE (Commercial & Multifamily) Purchase & Rehab- 100% LTV- No LTV Restrictions- Value Determined By Stabilized Income!

Purchase & Rehab- 100% LTV

Have a good project and don’t have the funds to close? This equity participation program is the answer to your problem. No LTV restrictions since Lender become an Equity Partner. DSCR as low as 1.00/1.00, Non-Cash flowing properties acceptable on a case by case basis with the appropriate reserves in place. Example: Multifamily Properties 50% vacant, existing cash flow does not support debt repayment, we will use stabilized values to determine DSCR.

 

• Loan Amount: From $1Million to 25 Million (Above 25 Million Participation is required)
• LTV: No LTV Restriction.
• Loan Term: Up to 36 months.
• Interest Only Payment
• Minimum Fico Required: None
• Prepayment Penalty: 6 Months Lock-out – thereafter none.
• Exit Fee: None
• Nationwide Lending
• Pricing Structure: 12% interest rate up to 25% Equity Participation is required. Buy-down is available on a case by case basis.
• Take Out Loans Available!

Rural Areas okay – No minimum population required.

—Medical/Dental Office —Office, Warehouse —Light Manufacturing & Industrial —Retail/Mixed Retail —Automobile Dealers —Light Automotive Services, —Tire and Brake Centers —Schools and Day Cares —Funeral Homes —Bowling centers— Restaurants —Oil/Lube Centers —Self Storage —Hotels, Motels —Multifamily —Gas Stations —Car Washers —Liquor Stores —Assisted Living Facilities, —Nursing Homes —Metal Buildings —Convenience Stores —Supermarkets, —Office Condos —Heavy Industrial building —Golf Courses —Hospitals —Dry Cleaners —Mobile Home Parks

Private Money Investing

A SAFER WAY TO INVEST THROUGH PRIVATE MONEY INVESTING

• Ø If you’re tired of poor performing market investments
• Ø If you’re looking for a double digit ROI
• Ø If you’d like more control over your portfolio
• Ø If you’d like to invest in Real estate but don’t want property management hassles

THEN YOU SHOULD CONSIDER BECOMING A PRIVATE MONEY INVESTOR

Private money investing is a type of financing in which a borrower receives funds, from a private investor, secured by real estate and or a personal guarantee from the borrower. This type of investing typically produces a regular, predictable income stream. A private money investor is the private source of funding for real estate investors. When an individual lends money to another individual on mutually agreeable terms, it is considered a Private Money loan. Many people equate private money investing with hard money loans.

Hard money refers to a short term financed loan that is secured by real estate and often a personal guarantee from the borrower, adding another layer of protection for the investor/lender. Additionally, a private money investor is also known as a private money lender, a hard money lender or a hard money investor.  They are essentially the same thing; private individuals lending their money directly to the borrower with interest rates, points and a promissory note secured by real estate.

Why would anyone consider becoming a Private Money Investor?  Investing in loans secured by real estate offer a higher rate of return and lower risks. Private lending offers the investor more investment control. Anyone with money, stocks, IRA or just really good credit to invest, can become a Private Money Investor. Countless stock investors who have grown tired of inconsistent returns and losses have become private money investors. Most of all you can invest in real estate without the hassles of being a landlord, dealing with contractors or tenants.

There are great advantages to being a Private Money Investor. There are no commissions to invest you money.  A private money investor can receive a relatively high yield from their investment; in most cases double digit returns.  Despite the “bailout”, banks are not making real estate investor loans. Real estate investors are desperate for funding. Private investors and hard money lenders have no competition. And they are “cleaning up!” This economy and the banking industry have created the perfect time to become a Private Money Investor. Home prices are low, foreclosures are high. Despite the “bailout,” banks aren’t making real estate investor loans. RE investors are desperate for funds. It’s time for you to seize the opportunity!

Flexibility is another advantage of being a Private Money Investor. As a PMI you have the option to invest in short or long term investments.  Typically, a loan can mature as soon as 6 months or as long as 3 years. The typical interest rate for a private money investment ranges from 10% – 18% depending upon the time frame, the purpose and other factors.

A common concern with any investment is that you may lose the money you invest. Smart investing includes risk management. Anyone offering a risk free investment is probably not being up front with you. Do your own due diligence. It is the best interest of a private money investor to minimize risk and maximize return. Low loan-to-value ratio (LTV) increases the security of the loan. Furthermore, Private Money Investor loans are secured by real estate, so in the event of default you still have the ability to recover your investment.

FAQ:

Q: What is a hard money loan or a private loan? Why would I choose to invest in them?

Q: Why would a Borrower seek a comparatively expensive private loan rather than a conventional bank mortgage?
Q: What’s in it for me?

Q: Do I have to have experience in RE investing or finance to invest?

Q: Are there upfront fees or commissions?

Q: With is the minimum I can invest?

Q: Can I invest with my IRA?

Q: What is the length of the investment time on these loans?

Q: How to do I get paid and when?

Q: What happens if the borrower defaults on my loan?

Q: What protections are in place to keep someone from running off with my money?

Q: What other ways am I protected as a Private Money Investor?

Q: How can I learn more about whether private mortgage investments are right for me?

Q: What is a hard money loan or a private loan? Why would I choose to invest in them?
A private loan is a secured debt obligation, which produces a regular, predictable income stream to the investor with all the security, protections and recourse that a mortgage lien can provide. While mortgages do not typically provide any capital appreciation, they do generate a steady stream of interest payments, which, in today’s market, can exceed current money market rates by more than 10%. Unlike stocks, the security is tangible bricks and mortar, where legal protections such as title insurance and many other unique rights and remedies ensure the enforceability of a mortgage lien. Many private mortgage loans are also secured by personal guarantees from the Borrowers, adding another layer of recourse beneficial to the investor.
Q: Why would a Borrower seek a comparatively expensive private loan rather than a conventional bank mortgage?
The answer is frequently time-based. There are many reasons, but for starters, here are two:
1. Time Crunch: The Borrower has applied for a conventional bank loan, but the time-of-the-essence closing date is rapidly approaching, the bank is still completing its due diligence, yet the Buyer/Borrower simply has to close in a timely fashion in order to avoid losing a hefty contract deposit. After closing the bridge loan with a Private Lender, the Borrower can then take as long as necessary to arrange permanent financing.

2. Transitional Property: Another typical case would involve a Borrower purchasing a vacant property that he plans to convert to another use (office to residential, for example). A bank would rather finance the deal AFTER the Borrower has executed his business plan, rented the property and created cash flow. The Private Lender is willing to get more deeply involved than most banks, evaluating the Borrower’s past track record, the viability of the Borrower’s current business plan to convert/improve the property, as well as the value of the Borrower’s personal guarantee or other collateral. The savvy Borrower is also fully aware that he is only going to have the Private Loan outstanding for perhaps 12 months, and that paying 12% – 14% for such a brief period of time is far LESS expensive than bringing in much more expensive equity partners for the long haul. If an owner or developer raises additional equity by bringing in partners, it is certain that he will have to give up a substantial “piece of the pie”.
Q: What’s in it for me?

The typical interest rate for a direct private loan ranges from 10% – 18% depending upon the time frame, the purpose, the loan-to-value ratio, the exit strategy, the quality of the Borrower’s personal guarantee(s) and other factors Low risk high return investment opportunities. More control over your investment dollars Long term and short term investing options

Q: Do I have to have experience in RE investing or finance to invest?

No, although we encourage our clients to become as knowledgeable as possible, your mortgage broker can aid you in evaluating your deal.

Q: Are there upfront fees or commissions?

Absolutely not!

Q: With is the minimum I can invest?

Most deals range from 20K to 450K, the choice is yours.

Q: Can I invest with my IRA?
Yes. There are many IRA custodians across the US that handle self-directed IRA’s and are familiar with this type of investment. Tax-deferred investors (IRA’s, Pension Plans, Keogh’s and the like)

Q: What is the length of the investment time on these loans?

Typically, a loan can mature in as soon as 6 months or as long as 3 years.

Q: How to do I get paid and when?

Distribution of the interest payments are made to investors monthly or quarterly.

Q: What happens if the borrower defaults on my loan?

In the case of default, the investors takes control of the property and can sell the property to regain the funds invested or can retain the property and collect the monthly income that the property is producing. In addition, there are joint venture options available to the investor who doesn’t have the time or interest in the above mentioned options; speak with your mortgage broker for more details.

Q: What protections are in place to keep someone from running off with my money?

Your funds will always be wired directly to the closing attorney or escrow agent. Your mortgage broker will NEVER ask you to wire funds directly to him or the company. Once you receive the closing attorney or escrow agents information, you should due the necessary due diligence to make you feel comfortable with wiring your funds.

Q: What other ways am I protected as a Private Money Investor?

As the mortgage holding you have the personal guarantee of the borrower, the subject property secured as collateral and your name on the insurance policy as well.

Q: How can I learn more about whether private money investments are right for me?
To learn more, you can contact us at 330 832 5253 or email us @ info@jdbfinancialllc.com

COMMERCIAL HARD MONEY PROGRAMS

(COMMERCIAL) EASY HARD MONEY

• Loan Amounts up to $500,000
• Full and Lite Doc Options
• Credit down to 600 Fico (all 3 scores must be over 600)
• 2 year fixed rate
• 2 year prepayment penalty
• 30 year amortization
• Rates starting in the 9’s
• LTV’s as high as 70%
• Unlimited Cash out

      Properties must be in the name of a corporation or LLC.  

PREFERRED STATES/QUICK CLOSINGS

• Up to 60% LTV
• 6 to 36 months
• I/O
• 12 to 15%
• 4 to 6 points

CA, AZ, NV, CO, WA, OR, HI & TX. Can close in as little as 5 days. Primarily focused on the following types of properties….

-”Single Family Residents (1 to 4 units), Multi Family Buildings, Retail Centers, Office Buildings, Industrial Buildings, Self Storage Facilities, Mixed Use Properties, Skilled Nursing Facilities, Gas Stations, Car Washes, Hotels and Mobile Home Parks.

-Distressed Property Acquirer–Nationwide.

-Preferring REOs (bank owned); however, will look at non-performing notes on anything listed above.

 SMALL COMMERCIAL HARD MONEY (100K TO 4M)

Nationwide – INCLUDING MI, OH, LA, IL, KY

• Up to 60% LTV
• 6 to 36 months
• I/O
• 12 to 15%
• 6 to 9 points
• Close in less than 30 days
• NO SCORE

Seller 2nds & cross-collateralization OK

QUICK QUAL FORM

BUSINESS CREDIT AND/OR CASH LINES. 720+ SCORE NO DOC’S** NO UP FRONT FEES

BUSINESS LOCs

- The ideal candidate would have 720 + MyFico:http://bit.ly/86RMd6 or above 

- Business entity that is registered with the Secretary of State (any state) 2 or more years ago (LLC, S-corp, C-corp, etc) in order to experience the advantages of our program

- Interest rates vary from 8.99% to 16.99%  (based on the lender’s underwriting criteria and your credit)

- Unsecured credit lines.  No collateral required. Stated application process.  No income verification.

- The lenders that I have handpicked ONLY report to the business credit bureaus (Dun & Bradstreet, Corporate Experian, and Equifax Commercial). This is advantageous to a business owner because even if the lines are maxed out, it will not affect the business owner’s personal credit.  The lender will only report defaults to the business owner’s personal credit.

- Most lenders offer an introductory 0% interest for 6 to 12 months on either balance transfers or purchases or both. 

- We charge 12%+1.5 of total credit approved.  If we don’t get you approved, there is no fee.  Our fee is a onetime fee.  You pay us once after your lines are approved and the lines are yours to pay back and reuse as many times as you like without any further fees to us.

- Initial investment is only about $45.00 for a credit report and credit monitoring service.

 

If you don’t meet these criteria, it doesn’t bar you from getting credit lines; it just means you may be extended a lower credit limit and or higher interest rate.

 

The entire process takes about 30 days total.  Most lenders make their credit decisions within 7-10 business days.  I have been successful in obtaining $100,000.00 in credit for our clients that meet the above criteria.  These results are not guaranteed for everyone.  Your results may vary based on your credit. Feel free to give me a call. Much Success to you!

 

 

 4 Steps to Start

1) Fill out the Pre Qual and (SAVE IT) and email it back to me, or fax the Pre Qualification Form to the number below once it is completed. This application will allow me to do a full and thorough evaluation for you to determine the best way for you to move forward.

 

2) You’ll need to set up a credit account with myFICO.com (these will be soft pulls and will not impact your FICO scores). The more people we are able to involve in the credit review, the more options you’ll have and the better the solutions we can provide so I suggest you complete the credit portion for you, your spouse, and any partners you have in the business. There is no obligation to anything but this allows me to give you a better review of your options and more solutions that will help you accomplish your goals.

 

3) Once on Myfico.com http://bit.ly/aEZdml on the lower left corner, expand site map, click

FICO Standard & purchase total should be about $40.00 for both purchases and be sure to purchase both scores and DO NOT purchase their other products such as Score Watch.

Use promo code “UNIONPLUS” for $7.00 discount. If that doesn’t work, type “myfico.com discount code” on google.com to find the latest promo code.

 

4) When complete please list user names and passwords on each site at the bottom of the attached Pre-Qual form. You can fax over to our fax number, scan or email this back to me when it’s complete. Thank you I look forward to our follow-up conversation so I can give you feedback and answer any of your questions.

 

***PERSONAL CREDIT AND/OR CASH LINES. 720+ SCORE NO DOC’S** NO UP FRONT FEES

PERSONAL LOCs:

Basic Qualifications for Personal Credit Funding the information outlined below represents real-time market realities in the financial and credit extension marketplace and provides an ideal target description for a “qualified” personal credit profile to receive optimum funding.

• If a credit profile falls outside of any of the specific descriptions listed below it will definitely have an impact on the potential “approved amount of funding”, or if the application will declined.
• We DO NOT process applications that are not qualified for funding. In addition, Prospective clients should take and use any Resources and necessary steps to enhance their credit file in order to meet minimum qualifications standard in order to be approved for personal funding.
• 720+ Credit Scores on all bureaus
• All “Revolving Balances” Should Be Below 60% Of The Credit Limit (Credit Utilization Rate or CUR). If anyone (1) revolving account balance is above 60% of the established credit limit it” may” have a negative impact on your funding approval. Any single revolving account balances with a CUR of 75% or higher may in fact generate a “decline” even if every other aspect of the credit file is in perfection condition. However, each individual credit file is different and the strength of the overall credit file will determine what impact having a higher CUR will have on obtaining …. No more than 4 Inquiries per Credit Bureau within the Last 90 Days!
• Minimum of 4 Open & Active “Primary” Trade lines On Credit File. Closed accounts do not h No More than 4 Inquiries per Credit Bureau within the Last 90 Days!
• Any Prior Bankruptcy, Foreclosure, Repossession, Judgment, Collection, etc. listed on the credit file places that file in a NOT
  QUALIFIED status.
• Any Past Late Payments Will Have An Effect On Getting Funding/Approval On Case By Case Basis. Excessive late payments will definitely create a NOT QUALIFIED” scenario. Credit profiles with late payments over 60 and 90 days typically DO NOT qualifies for funding.
• Physical residence address on loan application must match address listed on the credit bureau used for funding! If addresses do not match up this will automatically send the credit application into a security review status at which time all aspects of the file will have to be documented in order to get an approval.

In addition, the following specific terms apply to all “PERSONAL FUNDING

PROGRAMS”:

1. No up Front Fees for Our Services!
2. No Income Documentation or Verification required unless your file goes into a manual underwriting review process. 100% validation of personal identity.
3. All Personal Funding are Credit cards or cash cards.
4. Our backend fee is 15%= 1.5 of the approved funded amount/credit limit and is paid Inquiries WILL BE on the credit report since no lender will approve credit without checking credit.
5. Once we get a decline we STOP working on the file.

 

Real Estate Investing in 2011

Gallup Poll Says Americans View Real Estate as the Best Long-Term Investment

According to recent Gallup survey, just 54% of Americans have stock market investments (the lowest percentage since 1999). It then points out that Americans view real estate as the best long-term investment – a very popular alternative investment for the small to medium size investor.

The research polling center reports that the percentage of Americans who now own individual stock or a stock mutual fund in a self-directed 401(k) or IRA has steadily declined from 65% in 2007 when the financial crisis first hobbled the U.S. economy. That drop in stock market investment matches well with Gallup’s finding that Americans now trust stocks much less than real estate as a long-term investment. This is despite currently swelling stock prices and the crumpled housing industry.

According to the Americans polled in the Gallup survey, the best long-term investments are:

• Real estate (33%)
• Savings accounts (24%)
• Stocks or mutual funds (24%)
• Bonds (12%)

Is It Time to Consider Diversifying your portfolio with Real Estate?

To speak with a finance specialist about purchasing real estate, call 678 383 8438 today.